By what day of the month are Gross Sales reports due to Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 4: Under the Franchise Agreement, we require that all Royalty Fees, Marketing Contributions, Technology Fees, and, other fees as we may require, be paid by automated bank draft. Accordingly, you must sign an electronic transfer of funds authorization for your bank account. Gross Sales reports are due to us by the 5th day of each month or such other day as we establish. The Royalty Fee and Marketing Contribution will be withdrawn from your designated bank account by EFT monthly on or before the 5th day of each month (or the next day, if it is not a business day), or such other day as we may establish, based on Gross Sales for the preceding month. If you do not report the Gross Sales, we may debit your account for 120% of the last Royalty Fee, Marketing Contribution (and other fees) that we debited. If the Royalty Fee, Marketing Contribution, and other amounts we debit are less than the fees you actually owe us, we will debit your account for the balance on a day we specify. If the Royalty Fee, Marketing Contribution, and other amounts we debit are greater than the fees you actually owe us, we will credit the excess against the amount we otherwise would debit from your account during the following month.
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees are required to submit Gross Sales reports by the 5th day of each month. However, Face Foundrie retains the right to modify this due date. This report is crucial because it determines the Royalty Fee and Marketing Contribution, which are automatically withdrawn from the franchisee's bank account each month.
If a Face Foundrie franchisee fails to submit the Gross Sales report on time, Face Foundrie has the right to debit the franchisee's account for 120% of the last Royalty Fee and Marketing Contribution. This policy underscores the importance of timely and accurate reporting.
Furthermore, Face Foundrie reconciles the Minimum Royalty Fee with the actual Royalty Fees paid, typically on the 5th day of the month following the month the fee applies. They can debit the franchisee's account for any additional Royalty Fees due, but they also reserve the right to modify the timing or schedule of this reconciliation at their discretion. This reconciliation process ensures that franchisees pay at least the minimum royalty fee, regardless of their gross sales.